Correction is temporary.. Growth is permanent..Part 2

In this volatile times, when *Market* are down non stop, and no big local positive news happening where do we get conviction to stay invested in equity.

Conviction comes from quality of management and business.

Think....

Has maruti stopped making new cars and expansion of volumes ...?:car:

Has hpcl, bpcl,.... shutdown even one single pump due to high crude prices ...? :fuelpump:

Has jubiliant foods stop making dominos pizza...?:pizza:

Have school going children stopped buying bata shoes...?:mans_shoe:

Have ITC stop making cigarettes...?:smoking:

Did any bank send you back home saying, sorry sir no cash available today...?:moneybag:

Have people stopped taking baths and washing clothes with HUL products...?:ok_woman:🏻♂

Is any flight of indigo flying empty...?:airplane:

If answer to all above question is a big *NO* .... then why do we worry.

Prices of shares and NAVs of many good funds are available at lower
than demonitisation phase value of dec 2016

After demonitisation 2017 was a non stop dream run.:chart_with_upwards_trend:

So logically the seeds of next bull run are silently being sowed by smart investors.:seedling:

Finally 3 important things.

*1. If you are already fully invested, dont panic just hang on.

*2. If you have room for further investment, get brave and invest wisely in equity.

*3. If you are doing equity SIP you are already part of savvy investor.

Read my previous article Correction is temporary.. Growth is permanent

Topup your SIP NOW..

Nifty down from 11700 to 10300 in a very short period.

*What to do now??*

A lot of investors have started calling me to ask whether they should invest more at this time.
My answer is *Yes* provided you have a long term view of at least five years to stay invested.
If you looking for making some Quick Money by investing at this point of time, then My Answer is *NO*

The very nature of the market is to remain *Volatile*... and it is going to remain *Volatile* forever. Every fall in the market is followed by bounce back.

Historically, market falls are temporary and rise are gradual and permanent.

👉 *1) Harshad Mehta Scam (1992):* Sensex corrected by 54% in 1 year, it jumped 127% post that in 1 ½ years

👉 *2) 1996 Crisis: Sensex plunged 40% in over a 4 year period*, it jumped by 115% post that in little over 1 year

👉 *3) IT Bubble burst (2000): Sensex crashed by 56% in 1 ½ years*, it jumped 138% in 2 ½ years

👉 *4) Lehman Crisis (2008): Sensex crashed by 61% in 1 year*, it jumped by 157% in 1 ½ years post that

👉 *5) 2010: Sensex corrected by 28% in 1 year*, it jumped by 96% in 3 years post that

👉 *6) 2015: Sensex has corrected by 23% in 1 year,* and got handsome returns after that.

👉 *7) 2018: markets already 10 to 15% corrected from its peak*....Now what is NEXT ????

Now coming to another data..

*Year*     *Sensex*

1980           150
1990         1500
2000         6000
2010       21000
2018       38000

Think of year 2020, 2030, 2040 and beyond... You will be able to keep the noise out of your mind.

At this point of time, it reminds me the Golden lines of legendary investor Warren Buffett;
*Be greedy,*
        *when others are fearful..*
*Be fearful,*
         *when others are greedy.*

We firmly believe that *Wealth Creation* is a long term process. It will take time. There is no short cut to Wealth Creation.

*Three Golden Rules of Investing:*
1) Invest Early
2) Invest Regularly
3) Invest for Long Term

*In a nut shell,
What you should do now is,
Double up your SIPs or top up with Lump Sum investment... It is always beneficial to buy at discount.*

https://g.co/kgs/ziGTSA

Correction is temporary.. Growth is permanent

Worth evaluating

*********************************
👉 *1) Harshad Mehta Scam (1992):* Sensex corrected by 54% in 1 year, it jumped 127% post that in 1 ½ years

👉 *2) 1996 Crisis: Sensex plunged 40% in over a 4 year period*, it jumped by 115% post that in little over 1 year

👉 *3) IT Bubble burst (2000): Sensex crashed by 56% in 1 ½ years*, it jumped 138% in 2 ½ years

👉 *4) Lehman Crisis (2008): Sensex crashed by 61% in 1 year*, it jumped by 157% in 1 ½ years post that

👉 *5) 2010: Sensex corrected by 28% in 1 year*, it jumped by 96% in 3 years post that

👉 *6) 2015: Sensex has corrected by 23% in 1 year,* and got handsome returns after that.

👉 *7) 2018: markets already 10 to 15% corrected from its peak*....Now what is NEXT ????

Those who continued their SIPs during falling market benefited the most. Markets never give an indication before bouncing back!!